Rebalancing an investment portfolio is important to ensuring one stays well diversified. For those looking to do some spring cleaning and are looking for some additional diversification, you’ve come to the right place.
Here are three great long-term stocks to consider for some April portfolio clean-up.
Hands down, Fortis (TSX:FTS)(NYSE:FTS) is among the most defensive long-term plays on the TSX today. This company is one I’d recommend considering for a retirement portfolio, particularly one that pays growing income over time.
What makes Fortis a show-stopper for me is its dividend. Not only is Fortis a Dividend Aristocrat, but it’s one of the best.
This company’s historical dividend-growth rate is impressive. Indeed, there are few companies capable of delivering annual dividend increases for nearly five decades. Fortis has been able to do so due to an extremely stable core utilities business. It’s a cash flow machine. And if long-term capital preservation is high on your priority list, Fortis is one of the best options.
Restaurant Brands (TSX:QSR)(NYSE:QSR) is another lucrative growth play that remains one of my top picks. Some investors will note this stock has somewhat underperformed this past year. However, Restaurant Brands is one of those sneaky reopening plays with tonnes of upside for investors optimistic about an economic reopening taking place sooner than later.
Undoubtedly, this pandemic hasn’t been kind to Restaurant Brands’s core “in-restaurant dining” business. Pandemic-related restrictions have played a big role in underwhelming earnings results in recent quarters. However, there’s hope that a new normal is right around the corner as robust vaccine rollouts take hold.
Indeed, investors who seek leverage to such reopening plays will find Restaurant Brands quite appealing. For a company with Restaurant Brands’s growth profile, its price right now is one I view as dirt cheap. Accordingly, it’s one of those growth-at-a-reasonable price options that may not be priced reasonably for much longer.
Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is one of the top players in the utilities sector. But if you ask me, I think Algonquin’s excellent renewable energy profile sets it apart from its peers. In fact, Algonquin has followed a somewhat aggressive strategy to expand its portfolio in this domain.
I think even with massive capital inflows into this sector, Algonquin remains a stock that hasn’t benefited from these capital inflows to the degree pure-play renewables companies have. Thus, there’s a valuation gap at play with Algonquin I think can be exploited by long-term investors.
Additionally, Algonquin’s regulated utilities business provides a solid and stable base of cash flows from which it can increase its dividend over time. Like the other picks on this list, Algonquin provides excellent (growing) dividends over time. For investors looking for a mix of growth and defensiveness, this is a perfect long-term holding.
Like these top picks? Here are a few more to consider right now:
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC and RESTAURANT BRANDS INTERNATIONAL INC.